Business
Modi Government Reinforces ‘Trust First, Scrutinize Later’ Approach with New Income Tax Framework
As announced by Finance Minister Nirmala Sitharaman, individuals earning up to Rs. 12 lakh will be exempt from income tax under the new tax regime.
In her Union Budget announcement, she introduced several key initiatives aimed at simplifying the tax system and providing relief to various taxpayer segments.
Among the notable changes are revisions to the Tax Deduction at Source (TDS) limits, the introduction of new tax slabs for individuals, and increased benefits for senior citizens, demonstrating the government’s commitment to easing the financial pressure on its citizens.
Tax rebates will be granted in conjunction with the reduced slab rates, ensuring that many taxpayers will not have to pay any income tax. According to the Finance Minister, “The new structure will significantly lower taxes for the middle class, leaving more disposable income which can enhance household consumption, savings, and investment.”
Under the new plan, a taxpayer with an income of Rs 12 lakh will benefit from a tax reduction of Rs 80,000, which corresponds to the total tax payable under the previous system. An individual earning Rs 18 lakh will see a tax reduction of Rs 70,000, representing 30% of the current tax obligations. Those with incomes of Rs 25 lakh will benefit from a Rs 1.1 lakh tax reduction, amounting to 25% of their existing tax liability.
Additionally, there has been a revision in the income tax surcharge for high earners: a 10% surcharge for those earning between Rs 50 lakh and Rs 1 crore, a 15% surcharge for incomes ranging from Rs 1 crore to Rs 2 crore, and a 25% surcharge for incomes exceeding Rs 2 crore. This surcharge applies to individuals and households whose total income surpasses these limits.
With these reforms, the Modi government aims to establish effective governance that is responsive to the needs of the people and the economy. The Union government has also prioritized senior citizens by raising the tax deduction limit for interest income from Rs 50,000 to Rs 1 lakh. This initiative reflects the government’s dedication to easing the tax burden on seniors, who often depend on interest from savings for their post-retirement income.
Attention is now on the upcoming income tax bill set to be unveiled next week, which the Finance Minister asserts will embody the principles of ‘Nyaya’ (justice).
Mumbai: The Reserve Bank of India (RBI) has decided to close its special forex swap facility for fresh FCNR deposits early.
The facility will now close on August 31, the RBI said on Friday.
The central bank said the decision was taken after receiving an encouraging response. The facility has attracted $52.3 billion through fresh foreign currency deposits.
Banks can continue to undertake swaps with the RBI against FCNR deposits raised under the facility until September 11.
Meanwhile, the schemes for External Commercial Borrowings and Overseas Foreign Currency Borrowings will remain open until December 31, 2026.
The RBI launched the special US dollar-rupee forex swap facility on June 8. It allowed banks to raise fresh three-to-five-year FCNR deposits.
Banks could then swap these deposits with the RBI at a concessional rate. The facility effectively covered the entire hedging cost for banks.
The strong response to the scheme led the RBI to bring the facility to an early close.
Moodbidri: A dream that began in the rural area of Niddodi in Moodbidri has now gained national recognition. Leksa Lighting Technologies Pvt. Ltd., founded by Ronald Sylvan D’Souza, has been recognised as one of India’s Top 100 MSME companies.
The prestigious national recognition was presented by the MSME Udyog Foundation at a ceremony held in New Delhi on August 8, 2026.
Ronald Sylvan D’Souza started his entrepreneurial journey from a humble background. Through hard work, discipline and continuous efforts, he built Leksa Lighting Technologies into a recognised lighting technology company.
The company has focused on quality, technological innovation and indigenous manufacturing. Research and development have also played an important role in its growth.
Leksa Lighting has adopted Japanese work practices to improve its manufacturing and operational standards. The company has also worked towards developing quality lighting solutions in India.
What began as a dream in rural Karnataka has now reached different parts of the country. The company is also making its presence felt in international markets.
Speaking about the recognition, Ronald Sylvan D’Souza said the award was not an individual achievement. He credited the entire Leksa team, customers, business partners, family members and everyone who supported the company.
He said he was proud and happy to see a dream that began in Niddodi and Moodbidri receive recognition at the national level.
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The achievement highlights the potential of rural entrepreneurs. It also shows that determination, discipline and consistent hard work can help a business from a rural area achieve success on a national platform.
Leksa Lighting Technologies’ journey stands as an example of how a local dream can grow into a nationally recognised enterprise.
New Delhi: Buying a new vehicle is set to become more expensive from August 1, adding to the financial burden on consumers. Several automobile manufacturers have announced a price hike due to rising production costs.
The increase is mainly driven by higher prices of raw materials and components. The cost of steel, aluminium, rubber, plastic, electronic chips, batteries, and spare parts has gone up in recent months. Global market changes caused by ongoing conflicts and inflation have also increased manufacturing expenses.
As a result, vehicle companies have decided to raise the prices of new models. Customers planning to purchase a new vehicle are likely to pay more from August 1.
The price hike is also expected to affect the travel and transport industry. Travel agencies and tour operators say buying new cars, SUVs, and other passenger vehicles will become more expensive.
Operators have already been facing higher expenses due to increased fuel prices and toll charges. With the additional cost of new vehicles, many travel agencies are preparing to revise their rental charges.
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The Karnataka Travels Association has indicated that travel fares may be increased to manage the rising operating costs. Passengers may have to pay more for each trip if the revised rates are implemented.
Meanwhile, several automobile manufacturers have already published details of the upcoming price increase on their official websites. Consumers planning to buy a new vehicle may consider making their purchase before the revised prices come into effect on August 1.
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